As an emerging hotelier, you have an expensive adventure ahead of you. Rehabbing an existing hotel is a great way to remain competitive, particularly in an oversaturated market. Guests love to see updates that reflect modern trends; it indicates that you care about the property and their experience while there.
However, this is not an easy, short, or cheap road, and you’ll want to be fully aware of everything coming your way. As you close the doors to your hotel while it’s being remodeled, here are a few expectations you should have.
The Budget
Whether your hotel is large or small, you need a defined budget to manage expectations and avoid cutting into your profits. It’s always smart to include your construction team leaders and interior designers when planning the budget, as they can provide more accurate estimates for the costs of materials and labor. Itemize as much as possible. Broad-category estimates are off more often than small-category estimations.
Additionally, create a large contingency fund for unexpected surprises. In the world of renovations, things will go wrong, and if you’re prepared for it ahead of time, it won’t derail your budget.
As you consider your financing for this project, consider taking out loans for specific portions of the rehab. For example, every hotel rehabber will need a loan for the interior items in your hotel. (Use this great resource to explore furniture, fixtures, and equipment loans.) Individualized loans can reduce interest rates and fees because you take them out as needed rather than in a large sum at the beginning of the project.
Careful Planning
With the budget set, define the project details. Sometimes, your plans may be more grandiose than you can afford. In order to translate your wishes into reality, include your design and construction team on the process. They may be able to suggest more affordable alternatives to your great ideas.
While you set out a plan, here are some essential considerations to make:
- Timing: The beginning of your busy season is no time for a hotel remodel. The entire project could take months to finish, and if you’re operating at partial capacity during that time, it can be inconvenient for guests to deal with dust and blocked hallways. Choose a time where it won’t hurt your profits or your guests’ overall comfort to deal with construction.
- Branding: Keep the final design on-brand. While you’re renovating, consider the possibility of re-branding your hotel to meet modern standards. Or focus on modern styles that match your long-standing brand.
- ROI: Most importantly, understand the return on investment this update will have for your hotel. Certain updates won’t be worth the money while others will increase your nightly rate and entice more guests.
Communication
Few hotels can afford to shut down completely during the remodeling process, so you’ll likely perform the updates in sections. Unfortunately, this can create some unpleasant situations for your guests including noise, dust, and blockages.
Communicating with your guests is key to maintaining your reputation and keeping guests happy. Explain what’s going on and that exciting changes are happening. That way, they won’t be surprised to hear saws in the background and see mattresses being hauled through the lobby.
Wording is key in your communications as well. Saying “we’re remodeling” is obvious and lacks energy. Instead, generate excitement with your guests by saying, “Pardon our dust. A brand-new hotel experience is just around the corner. We’re working on making your stay here better than ever!”
Ask guests to leave feedback from their stay. Take note of their comments about inconveniences or problems related to the renovation. Strive to avoid getting future negative feedback in the future.
Advertising
Get your current and future guests excited about the upcoming changes through detailed advertising tactics. For example, you can generate significant excitement through social media—it’s a relaxed, inexpensive platform for extending the reach of your message.
You might post photos of the upcoming plans, behind-the-scenes looks, inspiration boards, hotel staff wearing construction gear, and other images. Include catchy captions that make the changes look exciting rather than inconvenient.
As you advertise and communicate with your guests during a rehab project, you’re more likely to receive positive feedback from your honored guests. This is an essential component of a successful rehab, and you’ll be glad you took the time now.